Abstract
The paper investigated the ascendancy of Operational risks on Water-Sanitation Infrastructure investments in Kenya. Deductive reasoning is used to put forward theories that are tested by means of fixed, predetermined research design and objective measures. The study adopts a mixed methodology research design where qualitative and quantitative research approaches are used to test the research hypotheses. From a target population of 127, Total Population Sampling (TPS) was adopted whereby the whole population was studied. Both descriptive and inferential analysis methods were employed in the analysis. The study results show that water service providers are hobbled by weak incentives for better performance, aging infrastructure, ineffective operations and maintenance, weak institutional capacity and little accountability to consumers. From the empirical evidence and conclusion, going forward Operational risks would be managed through Government enhanced role in absorbing risks aimed at a subsidy plan for investors in Water-Sanitation Infrastructure and strategic pricing through payment for environmental services meant to sustain projects.
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